I would say the test is this:

If a product is involved, can a reasonable amount of money be generated by the sale of the product alone? If sales cant generate enough money to keep one person afloat how will it generate money for others?

The simple answer is they wont

The introduction of a “product ” is the key to bypassing the legality issue in the TLT game.
Without a product the TLT model is definately an illegal pyramid scheme.

I believe TLTs really should not be legal because the product is secondary to the recruitment aspect, and is really only there as a decoy.
Carnival pitchmen always have the big stuffed animals on display which lures the suckers in and keeps them spending money on the “idea” that they can win.

The product in TLTs does the same thing.

Also these days instead of snake oil most TLTs involve “health products”

If the product being peddled was something that is tangible, like a kitchen gadget or a vacuum cleaner, people could clearly judge its quality, or its effectiveness.

But if its something like “healthy’ chocolate,a leap of faith is involved on behalf of the buyer,as there is little or no empirical evidence if or how well these products work.

Healthy chocolate skates real close to the edge as some research has been done which shows dark chocolate does have some health benefits.

But there is nothing to prove that the very expensive chocolate peddled by Xocai is any better than any other dark chocolate.

The company claims that their chocolate is “cold pressed” so it has more “flavonoids” or something.. I looked high and low for proof that there is a process of “cold pressing” and could find nothing.

But it sounds good on paper.

Last I would hope people are working at getting TLTs outlawed.
Utah is headquarters for most of these schemes because they allow it to flourish. Pressure needs to be put on politicians in Utah who look the other way, and I think TLTs should be banned across the country.

With this long running ‘recession ” or “depression” or whatever the economists want to call it,many desperate people have been lured in and seriously hurt by TLTs.

It has really taken a toll of families and society as a whole.